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RESOLUTION

On the 2006 State Budget estimates

THE NATIONAL ASSEMBLY OF THE SOCIALIST REPUBLIC OF VIETNAM

Pursuant to Article 84 of the 1992 Constitution of the Socialist Republic of Vietnam, which was amended and supplemented under Resolution No. 51/2001/QH10 of December 25, 2001, of the Xth National Assembly, the tenth session;

Pursuant to the State Budget Law;

Having considered Report No. 16/CP-KTTH of October 5, 2005, submitted by the Government to the National Assembly, on the 2006 state budget estimates; Verification Report No. 2060/UBKTNS of October 6, 2005, of the National Assembly's Economic and Budgetary Committee; and the opinions of National Assembly deputies,

RESOLVES:

I. To approve the 2006 state budget estimates, according to which:

- The total balanced state budget revenue shall be VND 237,900 billion (two hundred and thirty seven thousand and nine hundred billion Vietnam dong), representing 24.5% of the gross domestic product (GDP); if counting also VND 8,000 billion carried forward from 2005 to 2006, the total state budget revenue shall be VND 245,900 billion (two hundred and forty five thousand and nine hundred billion Vietnam dong);

- The total balanced state budget expenditure shall be VND 294,400 billion (two hundred and ninety four thousand and four hundred billion Vietnam dong);

- The state budget deficit amount shall be VND 48,500 billion (forty eight thousand, and five hundred billion Vietnam dong), accounting for 5% of the GDP.

(These figures are in Appendices 1, 2, 3, 4 and 5 enclosed herewith).

II. To approve the Government's solutions for implementing the 2006 state budget estimates, and solutions put forward in the verification report submitted by the Economic and Budgetary Committee to the National Assembly, emphasizing the following principal issues:

1. The Government shall expeditiously organize the performance of the 2006 state budget collection tasks according to the provisions of law; step up administrative reform and expand the application of modern tax management modes in order to create favorable conditions for enterprises to conduct production and business activities and fulfill financial obligations towards the State. To enhance the combat against smuggling, trade fraud and tax evasion; to inspect and thoroughly collect budget debts; and to strictly handle violations of law on state budget collection;

2. From 2006 to the end of 2010, to exempt fishing and production of unprocessed salt from enterprise income tax, natural resource tax and license tax; to reduce enterprise income tax amounts equal to job training expenses paid by production and business establishments that employ ethnic minority laborers so that these establishments can have funds to provide job training for such laborers. To assign the Government to guide and organize the implementation;

3. Where the world petroleum prices rise above the prices used for calculation of state budget revenue estimates, the Government shall work out solutions for stabilizing the domestic market and prices; shall not offset losses on petrol commodities, to gradually reduce subsidies for losses on kerosene commodities, and soon terminate offsetting of losses in a due course, abolish subsidization, raising the competitiveness of the economy;

4. The Government shall direct ministries, branches and localities to strictly implement the provisions of the State Budget Law; allocate budget capital in a concentrated manner, combat waste and loss, and use economically budgets for proper purposes; consolidate, and raise the quality and efficiency of, examination and inspection work, clearly define responsibilities of organizations and individuals in budget management and administration with a view to enhancing discipline in the finance-state budget domain; to organize the strict implementation of the provisions of law on thrift practice and waste combat and corruption prevention and fight. Heads of state budget-using units and relevant state management agencies shall be answerable for losses, waste, inefficiency, expenditures in contravention of regulations or in excess of set limits, at their units;

5. To concentrate efforts on directing land management work under the provisions of the Land Law; to speed up and basically complete the grant of land use right certificates; to activate the real estate market, creating state budget revenues. To enhance inspection and supervision of the management and use of public property; to combat self-seeking acts, ensuring efficiency and strict compliance with the provisions of law;

6. To continue to comprehensively apply revenue-generation solutions in order to carry out salary and social welfare policy reforms;

7. To ensure the use of budget reserves for proper objectives and proper subjects, not to use them in contravention of the provisions of the State Budget Law; quarterly, the Government shall report to the National Assembly Standing Committee, while People's Committees report to the Standing Bodies of People's Councils of the same level on the use of budget reserves according to the provisions of law;

8. In 2006, to continue issuing education bonds for investment in solidification of schools and classrooms under approved schemes; to continue issuing government bonds for investment in key traffic and irrigation works and for resettlement in service of construction of hydroelectric power plants, border patrol roads, small irrigation works in mountainous regions, and roads in localities where commune centers are not accessible by car. To allocate capital to the approved projects and works strictly according to their objectives and construction progress. To rationally mobilize bond capital on the basis of the capital disbursement capability to ensure that there will be no idle capital.

The Government shall, before deciding on investment guidelines, report to the National Assembly Standing Committee specific plans on the use of government bond capital for performance of the above-said tasks.

To continue mobilizing and efficiently using local resources and state credit supports for solidification of rural irrigation and traffic systems;

9. To step up socialization of education-training, medical, cultural, and physical training-sport activities, especially in urban centers, in order to strongly develop these activities and earmark more investment capital for difficulty-hit areas;

10. The Government shall review and report in detail to the National Assembly at the 9th session on the performance of national target programs, Program 135, the project on planting 5 million hectares of forest, and propose improvements to perfect mechanisms for management of these programs and project, especially the expired national target programs; assess the stabilization of local budgets in the 2004-2006 period, and at the same time, study, formulate and finalize criteria and norms for allocation of regular expenditure and development investment expenditure estimates, and submit them to the National Assembly Standing Committee for comments before deciding on their application, serving as a basis for the formulation of, and decision on, state budget estimates for the first year and the whole of the new period of local budget stabilization.

The Economic and Budgetary Committee shall closely coordinate with the Ministry of Planning and Investment and the Ministry of Finance in making state budget estimates and formulating central budget allocation plans for verification, and submit them to the National Assembly for consideration and decision, ensuring that annual budget estimates are practical, transparent, democratic and public.

III. Organization of implementation of the 2006 state budget estimates

1. The Government shall administer budgets according to the state budget estimates already decided by the National Assembly. In case of significant changes in state budget revenues and expenditures, the Government shall make adjustment plans and submit them to the National Assembly or the National Assembly Standing Committee for decision in strict accordance with the provisions of the State Budget Law.

2. In the course of implementation of the 2006 state budget estimates, the Government shall direct ministries, branches and localities to concentrate on the work of collection, especially collection of outstanding debts in import and export activities and domestic revenues, striving to collect revenues in excess of estimates in order to have more sources for implementation of salary policies, payment of capital construction debts, addition of development investment capital, and settlement of contingencies.

3. To assign the Prime Minister to direct the use of budget reserves and amounts collected in excess of budget estimates at all levels; in special cases, financial reserve funds or other lawful financial sources, and mobilize social resources for effectively coping with the avian influenza epidemic and human influenza pandemic under the Government's urgent plan of action.

IV. Supervision of the implementation of the 2006 state budget estimates

The National Assembly Standing Committee, the Economic and Budgetary Committee, the Nationality Council, and other Committees of the National Assembly, National Assembly delegations, and National Assembly deputies shall supervise state budget implementation in the domains and localities under their management according to the provisions of law.

To raise the role, effectiveness and quality of operation of the State Audit according to the provisions of the State Audit Law, detect in time wrongdoings in state budget management and administration, promptly propose competent state agencies to perfect mechanisms for strictly handling violations, and tighten financial discipline.

This Resolution was passed on November 1, 2005, by the XIth National Assembly of the Socialist Republic of Vietnam at its eighth session.